AIM-listed Rangers (LON:RFC) has confirmed speculation the cash-strapped football club is in talks with two major shareholders over a possible £1.5 million loan.
The Scottish club said in a stock exchange statement that the funds would be used for working capital – essentially code for keeping the business afloat.
Reports suggest the two stakeholders concerned are brothers Sandy and James Easdale, who are on the board, and Laxey Partners.
Chief executive Graham Wallace brushed off fears earlier this month that Rangers was on the brink of insolvency, calling such claims “ill-informed and inaccurate”.
The club is currently top of League One, 23 points ahead of second-placed Dunfermline.
The company said this morning: “The board of Rangers notes the press articles this morning and confirms that it is holding discussions with two major shareholders with a view to arranging a loan of up to £1.5m to provide working capital for the company.
“Documentation and terms have not been finalised, and a further announcement will be made when appropriate,” it added.
Rangers shares slipped 3.6% to 26.5p on Thursday. Since listing on London’s junior market in December 2012, the stock has dropped more than 60%.